1. New Hampshire Local Energy Solutions Clean Energy States Alliance
Resiliency in Energy Infrastructure and Communities
New Hampshire Local Energy Solutions
Concord, NH 2016
Todd Olinsky-Paul
Project Director
Clean Energy Group
Clean Energy States Alliance

2. Agenda for this presentation:
Introduction to Clean Energy Group and Clean Energy States Alliance
Energy storage and resilient power
Project examples
Economic landscape for storage
State policy landscape for storage
What’s next?

3. Clean Energy States Alliance (CESA) www.cesa.org
Renewable Development Fund

4. Energy Storage Technology Advancement Partnership (ESTAP) (bit
Energy Storage Technology Advancement Partnership (ESTAP) (bit.ly/ESTAP)
Conducted by CESA
Under contract with Sandia National Laboratories, with funding from US DOE-OE
ESTAP Key Activities:
1. Disseminate information to stakeholders
2. Facilitate public/private partnerships to support joint federal/state energy storage demonstration project deployment
3. Support state energy storage efforts with technical, policy and program assistance
Massachusetts: $40 Million Resilient Power/Microgrids Solicitation: 11 projects
$10 Million energy storage demo program
Kodiak Island Wind/Hydro/ Battery & Cordova hydro/battery projects
Northeastern States Post-Sandy Critical Infrastructure Resiliency Project
New Jersey: $10 million, 4-year energy storage solicitation: 13 projects
Pennsylvania Battery Demonstration Project
Connecticut: $50 Million, 3-year Microgrids Initiative: 11 projects
Maryland Game Changer Awards: Solar/EV/Battery
& Resiliency Through Microgrids Task Force
ESTAP Project Locations
Oregon: 500 kW Energy Storage Demonstration Project
New Mexico: Energy Storage Task Force
Vermont: 4 MW energy storage microgrid & Airport Microgrid
New York $40 Million Microgrids Initiative
ESTAP listserv >3,000 members
Webinars, conferences, information updates, surveys.
Hawaii: 6MW storage on Molokai Island and HECO projects

5. Clean Energy Group Resilient Power Project
SETH

6. Resilient Power Project: Supporting More than 50 Projects
Massachusetts Community Clean Energy Resiliency Initiative:
11 communities, 28 projects
City of Boulder: emergency center, shelter, wildfire center, wastewater treatment, public housing
Resilient Power Project: Supporting More than 50 Projects
California Multifamily Affordable Housing:
AB ,000 units
Chicago Housing Authority: 1,900 public housing units; senior, childcare, and health centers
Affordable Housing
Critical Facilities
Both
New York/New Jersey:
9 multifamily affordable housing projects, community shelter

7. Resilient Power Project
Increase public/private investment in clean, resilient power systems
Engage city officials to develop resilient power policies/programs
Protect low-income and vulnerable communities
Focus on affordable housing and critical public facilities
Advocate for state and federal supportive policies and programs
Technical assistance for pre-development costs to help agencies/project developers get deals done
See for reports, newsletters, webinar recordings
SETH

8. Hurricane Sandy October 29, 2012  $37 Billion in damages Disrupted electric service to more than 8 million people in 17 states

9. Aging US Power Grid Blacks Out More Than Any Other Developed Nation

10. Extreme Weather Disproportionately Hurts Vulnerable & Low-Income Communities
Low-income communities have more difficulty responding & recovering from destruction.
They lack income, savings, employment, insurance, communication channels & information – less resilient after severe weather.

11. Solar+Storage: The Resilient Power Solution

12. Solar+Storage: The Resilient Power Solution

13. Solar+Storage: The Resilient Power Solution
Islanding switch
Islanded resilient power system

14. Some recent solar+storage demonstration projects
Vermont
Rutland Microgrid
McKnight Lane LMI housing project
Massachusetts
CCERI projects
Sterling Microgrid
Oregon
Eugene Microgrid

15. Vermont: GMP Microgrid, Rutland (Stafford Hill)
4 MW batteries (lithium ion and lead acid) + 2 MW PV microgrid
Sited on closed landfill (brownfield redevelopment)
Provides resilient power for school (public shelter)
Project partners: Green Mountain Power, Dynapower, VT DPS, DOE, Sandia, CESA
Funding: $40K VT DPS, $250K DOE-OE
Total cost: $12 M
Payback < 7 years via utility capacity and transmission cost reductions
Follow-on projects:
14 LMI high-efficiency modular homes equipped with resilient power solar+storage (rural mobile home replacement project)
Burlington Electric Dept solar+storage microgrid at Burlington Airport

16. McKnight Lane Redevelopment: A LMI Residential Solar + Storage Project in Rural Vermont

18. Residential batteries are like any other home appliance
Self-contained
No tenant maintenance
No emissions
Works with solar to provide clean backup power during grid outages
Provides energy savings year-round

19. Goals for McKnight Lane Solar+Storage Project
Provide residential solar+storage resilient power systems for LMI tenant housing in rural Vermont
Demonstrate batteries for energy savings, resiliency
Demonstrate utility and ratepayer savings using behind-the-meter storage
Lessons learned inform future, similar projects
Tenants get benefits at no added cost

20. Massachusetts resiliency projects
With the national laboratories, CESA is providing technical assistance to 11 municipal CCERI awardees
Sandia: Sterling, Holyoke, Cape & Vineyard
PNNL: Northampton

21. Sterling, MA 2MW/3MWh Solar+Storage Microgrid
Project partners: SMLD, DOER, DOE-OE, SNL, CESA
Project timeline: Groundbreaking in October 2016, commissioning by end of year
Project Summary: 2 MW / 3 mWh lithium ion battery project, connected with 3.4 MW solar PV at utility substation; islanding capability to support municipal emergency facility.
Project Benefits and Revenue Streams:
Backup power to support town police station / dispatch center during grid outages;
Cost savings through reduction of SMLD’s capacity and transmission obligations to ISO-NE;
Revenues from electricity arbitrage
Integration of intermittant solar PV

22. Oregon: EWEB Grid Edge Demonstration
Joint federal/state, public/private demonstration project
500 kW / 900 kWh batteries (lithium ion) with 125 kW PV microgrid over three critical sites
Partners: Eugene Water & Electric Board, ODOE, DOE, Sandia, CESA
Funding: ODOE $45K, DOE-OE $250K
Provides resilient power to utility operations center, communications facility and water pumping station
EWEB project has been awarded federal/state funding and is now contracting with vendors
Demonstration goals:
transmission and distribution upgrade deferral
peak demand management
service reliability/resiliency
power quality
voltage support
grid regulation
renewable energy firming
ramp control
energy shifting.

23. Energy Storage Business Cases

24. Electricity consumption is flat while peak demand is rising

25. California “Duck” Curve

26. ISO-NE: Does this curve look familiar?

27. ISO-NE: Does this curve look familiar?

28. ISO-NE: Does this curve look familiar?

29. The business case for storage depends on WHERE the batteries are located:
Utility side of the meter (utilities can do this)
T&D investment deferral
Ancillary services provision
Utility capacity and transmission cost reductions
Renewables integration
Ramping
Arbitrage
Frequency regulation
Behind the meter (Commercial customers can do this)
Demand charge management
Demand response
Utility tariff switching
Reduced energy purchases
Frequency regulation
TOU arbitrage

30. Utility case: Municipal Utility Analysis - Massachusetts
Analysis conducted by Sandia National Laboratories
Based on 1 MW/1MWh lithium ion battery installed on distribution grid, with 3 MW solar PV
System to be owned and operated by Sterling Municipal Light Department, a municipal utility
Potential value streams:
Energy arbitrage revenues (buy low, sell high)
Reduction in transmission obligation to ISO-NE (cost savings based on monthly peak hour)
Reduction in capacity obligation to ISO-NE (cost savngs based on annual peak hour)
Resilient power provision to critical emergency facilities (non- monetizable benefit)

31. Arbitrage basis

32. PRELIMINARY RESULTS 1. Energy Arbitrage
Analyzed 33 months of data (January 2013-September 2015)
Optimization using perfect foresight
Cycling limitations were not included
PRELIMINARY RESULTS

33. 2. Reduction in Transmission Obligation (Regional Network Service (RNS) payments) to ISO-NE
Monthly payment based on maximum load
Payment for using transmission facilities to move electricity into or within New England
Current pool rate, effective June 1, 2015: $ /kW-yr
Need to “hit the hour” to reduce load, or else no benefit
Having a multi-hour battery (more capacity) provides no increase in benefit, but increases the odds of “hitting the hour”
PRELIMINARY RESULTS

34. Impact of Energy Storage Capacity on Transmission Savings
Increased energy storage capacity increases the likelihood of hitting monthly peaks

35. PRELIMINARY RESULTS 3. Reduction in Capacity Obligation to ISO-NE
Each load serving entity is responsible for a fraction of the Forward Capacity Market obligations
Based on one annual peak hour
Rates due to triple in three years
Increasing capacity does not increase revenue, just increases the odds of “hitting the hour”
3. Reduction in Capacity Obligation to ISO-NE
PRELIMINARY RESULTS

36. Impact of Storage Capacity on Capacity Savings
Increased energy storage capacity of limited benefit, due to distribution of annual peaks

37. 4. Resilience (critical facility backup)
Municipality has identified 10kW as the critical load at community critical emergency facilities
Resilience is not monetizable through markets, but is valued highly by the community and the state (CCERI grants)

38. Summary of Monetizable Benefits
PRELIMINARY RESULTS
Total potential revenue, 1MW, 1MWh system:
For a capital cost of ~1.7M, the simple payback is 6.67 years
Description
Total
Percent
Arbitrage
$40,738
16.0%
RNS payment
$98,707
38.7%
FCM obligation*
$115,572
45.3%
$255,017
100%
(transmission)
(capacity)
* data. Rates will be higher in , resulting in additional savings.

39. Vermont: GMP Microgrid, Rutland (Stafford Hill)
4 MW batteries (lithium ion and lead acid) + 2 MW PV microgrid
Sited on closed landfill (brownfield redevelopment)
Provides resilient power for school (public shelter)
Project partners: Green Mountain Power, Dynapower, VT DPS, DOE, Sandia, CESA
Peak hour 3:00-4:00 PM
Funding: $40K VT DPS, $250K DOE-OE
Total cost: $12 M
Payback < 7 years via utility capacity and transmission cost reductions
Follow-on projects:
14 LMI high-efficiency modular homes equipped with resilient power solar+storage (rural mobile home replacement project)
Burlington Electric Dept solar+storage microgrid at Burlington Airport

40. How can residential customers participate?
Solution: the Virtual Power Plant
Example: McKnight Lane project, Waltham, VT
The utility draws on batteries in McKnight Lane homes once or twice monthly to reduce peak demand; these savings reduce costs for ratepayers and help pay for the batteries
Utility gets cost savings
Tenants get clean backup power for free

43. Price of electricity increases, while cost of battery storage decreases
Cost of battery storage (by technology)

44. Modernizing the Grids
In addition to these resilient power initiatives, a few states have begun a process of revisioning the electric grid:
New York REV
Massachusetts grid modernization

45. Massachusetts Energy Storage Report: State of Charge
Optimization modeling results: 1,766 GW energy storage in MA by 2020
Policy recommendations: 600 MW energy storage in MA by 2025
Massachusetts energy diversity legislation
DOER directed to assess whether a utility storage mandate is appropriate, by December 2016; utilities would have to meet targets by 2020
Distribution utilities may now own storage in MA

46. Policy Recommendations from MA State of Charge Report
$10 M ESI demonstration project grant funding (recommend increase to $20M)
$20 M rebate program for BTM C&I projects
$150 K grants for solar+storage site assessments at C&I (manufacturing) facilities
$14.2 M remaining CCERI grant funding (round 3) to focus on hospitals
$10 M/year Green Communities Competitive Grant Program (recommendation is to add storage as an eligible technology to this existing program. Cap is $10 M / year total expenditure)
$4.5 M demonstration project grants (over three years) for utility and market actors to test and demonstrate peak demand management.
Add storage to Alternative Portfolio Standard (currently only flywheels are eligible)
Include storage in new Next Gen Solar Incentive Program (replaces SREC II)
Clarify regulatory treatment of utility storage (IOUs revise grid mod plans)

47. Policy Recommendations from MA State of Charge Report
Support demand reduction demonstration programs using energy storage in the Three-Year Energy Efficiency Investment Plan
Allow storage to be part of all future long-term energy procurements (requires statutory change)
Adopt safety and performance codes & standards for storage (probably with support from DOE and national labs)
Clarify and streamline interconnection requirements for storage
Education, sharing of use cases (with DOE/national lab support)
Facilitate sharing of utility customer load data and other info (such as transformer loading at substations) to allow storage developers to offer tailored products for specific customer classes (possibly in collaboration with a university or national lab that could serve as the data repository)

48. CEG proposal for Northeastern States Collaborative on Energy Storage Policy
Northeastern states share similar markets (within ISO-NE)
States can learn from the experience, lessons and analysis of Massachusetts
States can share knowledge gained through their own experience
States can collectively apply for DOE and foundation funding to support energy storage policy development
States can collaborate on policies of regional importance
ISO regulatory reforms
Market development
Industry development
Utility interconnection issues

49. Thank You Todd Olinsky-Paul Project Director CEG/CESA
ESTAP Website:
ESTAP Listserv: